Prabhu.Ram

ABCD and a probably bullish wedge

Long
FX:EURCAD   Euro / Canadian Dollar
1
Hello traders,
After looking at the recent price action and the new found strength in the EUR, I believe it is time to look for further action with EUR pairs. Currently, I see a bullish ABCD pattern in play and the target for this is just above a trend line I have shown above. Now, whether this pattern goes on to form a classic wedge or not is something to be seen. But currently, there are a lot of signs for a continuation of the upward move at least to 1.4335 area.
The only problem however is, if entering long now, it may be tricky to find a good S/L.
However, looking at the swift AB leg, we could safely say that a prolonged consolidation around current level is not logical. Hence, I would place a S./L below yesterday's lows.
SELL EUR/CAD @ current price. S/L @ 1.4095 and T/P 1.4335
That is about 80 pips of S/L to 170 pips T/P. I believe that is a decent ratio to trade.
Happy trading and happy pipping!